May Election a Turning Point for Institutional Crypto in Australia: Insights from OKX CEO

The upcoming federal election in Australia, scheduled for mid-May, could serve as a significant turning point for the involvement of institutional investors in cryptocurrency, according to Kate Cooper, the newly appointed CEO of OKX Australia.

In an interview, Cooper emphasized her hopes for the election to lead to the introduction of crypto legislation that has been in development for the past two years.

In August 2022, the Australian government initiated consultations with various industry players, investors, and stakeholders to begin creating a regulatory framework specifically for the cryptocurrency sector.

"The industry has been calling for both clarity in regulations and regulations that are tailored to our needs," Cooper stated.

While there has already been an increase in retail users due to a positive market trend, Cooper believes that clearer regulations will drive further institutional adoption.

Before joining OKX on March 6, Cooper had held significant positions at major Australian banks, including National Australia Bank (NAB), where she focused on digital assets and innovation, as well as Westpac as the head of innovation. She also served as the Australian CEO of the institutional crypto platform Zodia Custody.

"At NAB, we found that a lack of regulatory clarity was a major barrier to advancing beyond the proof-of-concept phase in crypto adoption," she explained.

"For institutional adoption to fully materialize, regulatory clarity is essential. Retail consumers, too, need protection; almost a third of Australians own some type of digital asset, primarily cryptocurrencies," she added.

The political landscape may shift in Australia, as the federal election is expected to take place no later than May 17. The leading political parties are the center-right coalition and the current center-left Labor party. According to the latest YouGov poll, the coalition has a slight advantage over Labor, leading by 51% to 49%.

Interestingly, the crypto investor demographic could potentially be a pivotal voting segment. A survey conducted on February 19 revealed that 59% of current crypto investors prefer to support candidates who are pro-crypto.

If a pro-crypto party wins, Cooper predicts a surge in stablecoin activity, stating, "We anticipate that 2024 will be the year of stablecoins, moving from theoretical concepts to actual applications in the real world."

"If a new regulatory framework brings the necessary clarity, there are already players in Australia ready to seize that opportunity," she remarked.

In 2024, stablecoins are projected to witness remarkable adoption, with transfer volumes exceeding $27.6 trillion, surpassing the combined volumes of major payment processors like Visa and Mastercard, as noted in a report by crypto exchange CEX.io.

Cooper observed that the banking sector is becoming increasingly engaged with cryptocurrency and digital assets, acknowledging them as a new asset class that has emerged in the last 25 years.

"It has been a long road, but banks are maturing in their adoption. We are moving towards tangible, real-world use cases," she said.

As we approach the election, it is understood that the current government has no plans to establish a crypto reserve, unlike actions taken by the U.S. under former President Donald Trump earlier this month.

Cooper attributed this cautious approach to Australia’s conservative mindset, which tends to observe the actions of other jurisdictions before making significant changes.

Nevertheless, she insists that regardless of the election's outcome, it is crucial for the winning party to formulate a clear strategy for positioning Australia as a leader in the digital economy and to harness the potential of blockchain technology.

election, crypto, regulation